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Friday, 18 January 13
NEWLEAD HOLDINGS LTD. TO ACQUIRE TWO COAL PROPERTIES WITH ESTIMATED COAL RESERVES OF 18.6 MMT & 143.1 MMT
 NewLead Holdings Ltd. Announces Signing Agreement to Acquire Properties with Estimated Coal Reserves of 18.6 Million Tons; Signing Agreement to Acquire Properties with Estimated Coal Reserves of 143.1 Million Tons and Securing 3-year Coal Supply Contracts Expected to Generate $873.5 million of Revenue
NewLead Holdings Ltd., is an international, vertically integrated shipping and commodity company that manages product tankers and dry bulk vessels, yesterday announced that the Company has entered into an agreement to acquire title and excavation rights in properties containing 18.6 million tons of estimated coal reserves for $11.0 million.
According to a press release posted on Company’s website, NewLead also entered into an agreement to acquire ownership and leasehold interests in properties containing approximately 143.1 million tons of coal for $55.0 million. Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "We have expanded our recently launched commodities business with the agreement to acquire an estimated 18.6 million tons of coal reserves. We are in the process of acquiring additional coal properties with reserves estimated at approximately 143.1 million tons. Once we have acquired all of the assets, our coal reserves will consist primarily of sub bituminous B coal, which is 13,500 BTU with low sulfur. We will also have 'Blue Gem' and 'Rich Mountain' seams of coal, highly sought after in the international market. We believe that our international shipping expertise will allow us to exploit the demand for these coal reserves."
Michael Zolotas continued, "In entering the mining business, we undertook to secure supply contracts for the coal reserves. Consequently, we entered into two agreements to supply coal to third parties. These agreements are expected to generate $873.5 million of revenue over a three-year period. Based on our projections of operating costs, we believe that these sales will have healthy margins and will generate significant cash flow with which to fund continued growth. We intend to supplement the supply agreements by allowing contract miners to mine and pay us a royalty for coal removed."
Coal and Natural Gas Reserve Acquisitions
As of December 28, 2012, NewLead entered into an agreement to acquire title and mineral excavation rights to 5,000 acres of land in Kentucky. The coal reserves in these properties are estimated to be approximately 18.6 million tons. The transaction is subject to execution and delivery of certain definitive agreements and other closing conditions, but is currently expected to close by January 29, 2013. There can be no assurance that the transaction will be consummated. The consideration of $11.0 million was paid in the form of notes maturing on January 29, 2013. The notes do not accrue interest, but remain subject to a guaranty by the initial purchaser and are secured by a mortgage lien and a security interest in the assets being purchased.
NewLead has also entered into an agreement to acquire ownership and leasehold interests in 18,335 acres in Tennessee containing coal and natural gas and other natural resources. The agreement contemplates that the Company will acquire rights, title, permits and leases to coal mines with total reserves estimated at 143.1 million tons. The transaction is subject to execution and delivery of certain definitive agreements and other closing conditions, but is currently expected to close in February 2013. There can be no assurance that the transaction will be consummated. The agreement contemplates that consideration of $55.0 million shall be payable in cash in two installments; $30.0 million at closing and the remaining $25.0 million on the first anniversary of the closing.
The estimated reserves stated above are as determined by independent appraisals. The methodology used by the independent appraisers was not compliant with the methodology required by the Securities and Exchange Commission ("SEC") in reserve reports and, accordingly, should not be relied upon. Such reserve information is only provided to give the best currently available information. NewLead is undertaking to obtain reserve reports that comply with SEC methodology. Such reports may differ materially from the information provided herein.
The properties in Tennessee and Kentucky also include natural gas wells and projects relating to extraction of timber, sand, gravel, fly ash and dimension stone. Third parties are currently extracting these commodities on the properties and paying royalties.
Coal Supply Contracts
NewLead signed two coal supply contracts with creditworthy counterparties for the sale of coal to such parties. Annual revenue from these two contracts is expected to be $184.7 million in the first year, $318.4 million in the second year and $370.4 million for the third and final year.
The first contract provides for the sale of 70,000 tons of coal per month for the first 12 months (840,000 tons annually), increasing to 140,000 tons per month for the second year (1.68 million tons annually) and 210,000 tons per month for the third year (2.52 million tons annually). All tonnage is subject to a variation of 5%. The price was established based on the prevailing market price for coal at the time the contract was entered into.
The second contract provides for the sale of 130,000 metric tons per month for the first 12 months (1.56 million metric tons annually), increasing to 210,000 metric tons per month for the second and third years (2.52 million metric tons annually). All tonnage is subject to a variation of 5%. The price was established based on the prevailing market price for coal at the time the contract was entered into.
NewLead intends to source the coal to meet such contracts from the estimated reserves discussed above, but to the extent it is unable to do so, it will be required to seek to source the coal from other suppliers at the prevailing prices.
Management Company
NewLead also entered into an agreement to acquire a local coal mining management company in exchange for compensation, paid in the form $3.0 million in common shares of NewLead and a warrant for $6.4 million in common shares of NewLead. Such acquisition is subject to a number of terms and conditions and there is no assurance it will be consummated. The management company shall be responsible for managing the daily operations of the coal mines and the excavation of the coal from the properties.
For more details please visit www.newleadholdings.com.
Source: NewLead Holdings
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Wednesday, 30 May 18
HIGH PRICE, DMO ENCOURAGE COAL MINERS TO BOOST PRODUCTION - THE JAKARTA POST
A number of coal miners are planning to increase production by 10 percent in the second half of this year after a worldwide price increase.
Th ...
Wednesday, 30 May 18
SHIPPING MARKET INSIGHT - ILIAS M. LALAOUNIS
Among several hot topics that will be discussed during the Posidonia week, the International Maritime Organization regulation that will be enforced ...
Tuesday, 29 May 18
BLOCKCHAIN CAN HAVE A TRANSFORMATIVE EFFECT ON THE SHIPPING INDUSTRY
KNOWLEDGE TO ELEVATE
Following the launch of a legal briefing on blockchain contracts from UK P&I Club, Claims Executive, Filip Koscieleck ...
Tuesday, 29 May 18
INDIA'S COAL IMPORT DECLINES IN APRIL AMID DIVERSION TO THERMAL POWER PLANTS - PTI
India’s coal import fell by 9 percent to 17.32 million tonnes (MT) in April on the back of ample supply of dry fuel from domestic sources.
...
Monday, 28 May 18
COAL SUPPLY DIVERSION IRKS INDUSTRIES DEPENDENT ON CAPTIVE POWER PLANTS - HINDU BUSINESS LINE
The government’s move to prioritise coal supplies to power plants with minimal coal stock has disrupted fuel supply to some sectors, which ha ...
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Showing 1711 to 1715 news of total 6871 |
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- Asmin Koalindo Tuhup - Indonesia
- Bhoruka Overseas - Indonesia
- Chettinad Cement Corporation Ltd - India
- New Zealand Coal & Carbon
- Bulk Trading Sa - Switzerland
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- Kobexindo Tractors - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate General of MIneral and Coal - Indonesia
- Sical Logistics Limited - India
- Straits Asia Resources Limited - Singapore
- Interocean Group of Companies - India
- Kartika Selabumi Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Ministry of Mines - Canada
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Antam Resourcindo - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- Manunggal Multi Energi - Indonesia
- Meralco Power Generation, Philippines
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Gujarat Electricity Regulatory Commission - India
- Minerals Council of Australia
- Essar Steel Hazira Ltd - India
- Heidelberg Cement - Germany
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Karaikal Port Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Sakthi Sugars Limited - India
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Chamber of Mines of South Africa
- Siam City Cement PLC, Thailand
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Renaissance Capital - South Africa
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Kapuas Tunggal Persada - Indonesia
- Directorate Of Revenue Intelligence - India
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement - Thailand
- Goldman Sachs - Singapore
- Oldendorff Carriers - Singapore
- Deloitte Consulting - India
- Toyota Tsusho Corporation, Japan
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercator Lines Limited - India
- Barasentosa Lestari - Indonesia
- Sojitz Corporation - Japan
- Energy Development Corp, Philippines
- Marubeni Corporation - India
- Jindal Steel & Power Ltd - India
- London Commodity Brokers - England
- Australian Coal Association
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Kaltim Prima Coal - Indonesia
- IEA Clean Coal Centre - UK
- Attock Cement Pakistan Limited
- Romanian Commodities Exchange
- Coalindo Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- CNBM International Corporation - China
- CIMB Investment Bank - Malaysia
- Electricity Authority, New Zealand
- Wilmar Investment Holdings
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- Xindia Steels Limited - India
- Indika Energy - Indonesia
- Thai Mozambique Logistica
- Salva Resources Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Formosa Plastics Group - Taiwan
- International Coal Ventures Pvt Ltd - India
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Bharathi Cement Corporation - India
- Altura Mining Limited, Indonesia
- Orica Mining Services - Indonesia
- The State Trading Corporation of India Ltd
- Maheswari Brothers Coal Limited - India
- San Jose City I Power Corp, Philippines
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Rashtriya Ispat Nigam Limited - India
- Cement Manufacturers Association - India
- Kideco Jaya Agung - Indonesia
- Riau Bara Harum - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coal and Oil Company - UAE
- PowerSource Philippines DevCo
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- Planning Commission, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Singapore Mercantile Exchange
- Trasteel International SA, Italy
- VISA Power Limited - India
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- Price Waterhouse Coopers - Russia
- Energy Link Ltd, New Zealand
- Carbofer General Trading SA - India
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
- PTC India Limited - India
- Agrawal Coal Company - India
- Semirara Mining and Power Corporation, Philippines
- Petron Corporation, Philippines
- Orica Australia Pty. Ltd.
- Anglo American - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Indogreen Group - Indonesia
- Iligan Light & Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Central Electricity Authority - India
- Therma Luzon, Inc, Philippines
- Simpson Spence & Young - Indonesia
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- Ceylon Electricity Board - Sri Lanka
- Ind-Barath Power Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- Bhatia International Limited - India
- SMC Global Power, Philippines
- Eastern Coal Council - USA
- Intertek Mineral Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Neyveli Lignite Corporation Ltd, - India
- Borneo Indobara - Indonesia
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- Indian Energy Exchange, India
- Vijayanagar Sugar Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Dalmia Cement Bharat India
- Meenaskhi Energy Private Limited - India
- Economic Council, Georgia
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Commonwealth Bank - Australia
- White Energy Company Limited
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- Sarangani Energy Corporation, Philippines
- Baramulti Group, Indonesia
- Vizag Seaport Private Limited - India
- Parliament of New Zealand
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Global Business Power Corporation, Philippines
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- Ministry of Transport, Egypt
- Merrill Lynch Commodities Europe
- Cigading International Bulk Terminal - Indonesia
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- Malabar Cements Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Krishnapatnam Port Company Ltd. - India
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- Wood Mackenzie - Singapore
- Mercuria Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Tamil Nadu electricity Board
- GAC Shipping (India) Pvt Ltd
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- TeaM Sual Corporation - Philippines
- Africa Commodities Group - South Africa
- Tata Chemicals Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
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